Dust settles! Ant Group acquisition approved, Yao Cai Securities surges over 80% at one point

What is the strategic value of Ant Group’s acquisition of Yau Ma Tei Securities?

On March 17, after Hong Kong’s established brokerage Yau Ma Tei Securities Financial (01428.HK) resumed trading, its stock price surged, briefly rising over 80%. As of 9:55 AM, the increase was 57.82%, trading at HKD 14.63 per share.

In terms of news, there has been the latest development regarding Ant Group’s acquisition of Yau Ma Tei Securities. According to an announcement by Yau Ma Tei Securities Financial on the evening of the 16th, the tender offer initiated by Ant Group has received approval from relevant authorities, and the transaction is expected to be completed by March 30.

Yau Ma Tei Securities stated that, as part of the acquisition by Ant Group, all conditions for the transaction have been met. The announcement mentioned that the company’s stock was briefly suspended on the 16th and will resume trading starting from the market open on the 17th.

This deal traces back to April 25, 2025. On that day, Ant Group’s wholly owned subsidiary Shanghai Yunjin Information Technology Co., Ltd. announced it would acquire 50.55% of Yau Ma Tei Securities held by founder Ye Maolin at HKD 3.28 per share, totaling approximately HKD 2.814 billion.

This offer represented a premium of about 17.6% over Yau Ma Tei Securities’ closing price of HKD 2.79 on April 22, and an 18.8% premium over the average closing price of the previous 30 trading days, demonstrating Ant Group’s firm commitment to taking control of this Hong Kong-listed brokerage.

In October 2025, the acquisition was first approved by the Hong Kong Securities and Futures Commission, allowing Ant to become the major shareholder of four regulated subsidiaries of Yau Ma Tei Securities. On November 25, 2025, due to mainland reporting procedures and holiday factors, both parties revised the agreement, extending the deadline to March 25, 2026, with an increased deposit of HKD 164 million.

The announcement also disclosed that the approval period from the Hong Kong Securities and Futures Commission will be extended to April 30, providing ample time to complete the transaction.

As a leading local brokerage in Hong Kong established in 1995 and listed on the Hong Kong Stock Exchange in 2010, Yau Ma Tei Securities holds licenses for Types 1, 2, 3, 4, 5, 7, and 9 regulated activities issued by the Hong Kong Securities and Futures Commission. Its business covers global stock trading, margin financing, futures and options, leveraged forex, and asset management. Known for its “low commission” strategy, it is marketingly called the “Low Commission King.”

As of the end of September 2025, Yau Ma Tei Securities had over 600,000 clients and client assets totaling HKD 86.3 billion, a 34.4% increase year-over-year. The interim report for 2025/2026 showed that for the six months ending September 30, 2025, the company’s revenue was HKD 496.9 million, up 10.7%, with net profit attributable to shareholders of HKD 326.9 million, up 4.8%, maintaining steady operational performance.

Donghai Securities Research Institute pointed out that Ant Fortune’s platform, connecting over 150 asset management institutions and a complete range of financial products, can efficiently complement Yau Ma Tei Securities’ trading, asset management, and derivatives businesses. Coupled with Ant’s over one billion user base, both sides are expected to deeply explore customer resources, improve the wealth management product matrix, and further increase market share in Hong Kong.

Western Securities also believes that this acquisition will help Ant Group obtain a Hong Kong brokerage license, enabling it to use Hong Kong as a foothold for international expansion.

(Note: The content of this article is for reference only and does not constitute investment advice. Investors operate at their own risk.)